UBS predicts two percent growth

The UBS bank has upwardly revised its growth forecast for the Swiss economy.

UBS economists now expect gross domestic product (GDP) to increase by two per cent this year, against their previous prediction of 1.7 per cent, according to a press release issued on Monday.

Switzerland's largest bank based its more optimistic forecast on the results of a quarterly survey taken from 650 companies.

The bank also forecasts a average inflation rate of 0.6 per cent throughout 2010.

Price pressure will remain "relatively low" because of high unemployment (currently at 4.5 per cent) and the strength of the franc, the bank added.